If we lend you money, but you have a risk loan profile, mortgage insurance may be required. Typically, if you put down less than 20% on a conventional loan, you may cancel the insurance at 80% under certain conditions.
If you take out an FHA or USDA loan, you pay mortgage insurance for the life of the loan. The insurance protects us if you default on the loan. The FHA and USDA guarantee the loan amount by charging insurance premiums to cover the costs.